(Elasticity 2) and the textbook 3. In 1997, faced with a lawsuit settlement of $246 billion, the cigarette makers increased prices by 49%, causing the quantity demanded to fall by only 7%, indicating inelastic demand for cigarettes, as the price elasticity of demand in this case - -7/49 - [-0.141 = 0.14. Why might the price elasticity of demand for cigarettes by young smokers be different from the price elasticity of demand for cigarettes by older smokers? Will a tax on cigarettes raise a state's revenues in your view? Why or why not? (2 points)